UK economy grew 0.4% in July, ONS reports

Services led the monthly expansion, exceeding forecasts of stagnation

The UK economy expanded 0.4% in July 2026, the Office for National Statistics reported, following 0.3% growth in June and zero growth in May. The monthly reading exceeded the consensus forecasts that had projected stagnation during the month, according to the ONS figures carried by The Guardian.

Pre-release forecasts had largely pointed to a flat or near-flat print for July, making the published result a stronger outcome than projections had indicated. The 0.4% rise was the largest monthly expansion in the three-month window of May, June and July.

The Guardian’s reporting placed the release in what it described as the final month of Sir Keir Starmer’s premiership, noting that the stronger-than-expected reading ended the prime minister’s final month in office.

The ONS attributed the monthly growth primarily to a 0.4% rise in services. Production added a 0.2% gain and construction contributed a smaller 0.1% increase over the month.